FORTUNA: Why do you think there is so much talk about the alleged intervention of the Government in the sale process?
EURNEKIAN: Telecom is a large and important company on sale. However,the transaction is somewhat becoming a national issue when, in fact,selling one company to another is something common.
The Government has been accused of acting and influencing the sale. Inmy personal view, I would have liked to see the Government take moredrastic actions as other governments have done to encourage a localcompany to buy any foreign company that is going for sale. Concerningthe purported intervention of the Government, I believe we should takeaway the deliberate intent shown by these sectors and the owners ofcertain large media companies.
We all have the same right to purchase and compete for Telecom.
The people close to the executive like to give an example of how a moreactive involvement of the Government should be, as Eurnekian has beenclaiming. “When Lula gives his support to see Petrobras or any otherlarge Brazilian company purchase another company – an executive fromCorporación América says, - we believe it is the right thing to do.
We even say it is an example we all should follow. However, when theArgentine Government exerts pressure for the sale of a company, as inthis case, a competition regulation problem appears, and we see it as aproblem. I do not even want to think of the scandal it would be if theGovernment inclines in favor of Aeropuertos Argentina 2000 to purchasea company, be it Telecom or any other! Anyway, the one that is to makethe final decision who it will sell the company to is Telecom Italia.Following that line of thought, Eurnekian says the Government shouldtake a more active role in this kind of sale… just like Lula is doing.”
MANAGEMENT. Franco Bernabé, the CEO of Telecom Italia, addressed theissue in public to calm down the local bidders. From Rome, he ensuredthe SEC “is not posing any problem. We received the notice whereby theylet us know about the investigation they are conducting concerning theArgentine part of the process. In addition, Telecom Argentinamanagement was always featured by utmost transparency as far asbehaviors and respect for the market are concerned.”
FORTUNA: The fact that the Italians are somewhat forced to sell the company, does not make negotiations even more difficult?
EURNEKIAN: The call for bids is a private process. Therefore, everycompany and every executive has a right to participate and compete. Theone who defines the bidding terms is the seller. So, the process iscompletely different from a public bidding process. I did not forceanyone to sell.
Telecom Italia is being compelled to sell, not because it wants to sellbut because Telefónica de España has acquired a share in the Italiantelecommunications company. Thus, one single company would get tomanage 100% of the telephony market in Argentina. This is what we knowas a monopoly. So, the Argentine Government has reasonably told thecompany: “Sirs, you cannot keep such shareholding. You must sell it.”
Then, the company takes the right action and calls for private bids.This is why I participated and submitted my own bid in this process.
During his conversation with FORTUNA, Eurnekian was insistent andrepeated a phrase: “I did not force them to sell. The opportunityshowed up, I took it, and submitted a bid. That is all.”
When the helicopter was about to take off, Eurnekian’s last phrasesummarized the current status of the negotiation: “The operation tosell the shares in Telecom Italia is nowhere. We are just waiting.”
